Short Takes: Morgan Fund to Target 50 'Best Stock Ideas'

J.P. Morgan this week began taking subscriptions for a new global mutual fund, which will invest in what the bank deems the "50 best stock ideas" from around the world.

The J.P. Morgan Global 50 Equity Fund, due to be rolled out May 29, will track 50 stocks chosen from among 2,500 companies in both developed and emerging markets, said George Gatch, a J.P. Morgan managing director and head of its U.S. mutual fund business.

"We've been managing international equities since 1975," said Mr. Gatch. As a result, the bank can draw on a "substantial buy-side equity analyst capability" including 85 equity analysts located around the world, he said.

The fund's strategy will be two-pronged, said Mr. Gatch. First, the analysts will identify companies that are undervalued with respect to future earnings.

Second, portfolio managers Andrew Cormie and Tom Madsen will assess the stocks using factors that might affect their performance, Mr. Gatch said. These include globalization of world markets and consolidation in financial services.

Because the portfolio will be actively managed, the turnover of stocks could be as much as 100%, Mr. Gatch said.

The fund will not carry a load and will require a minimum investment of $2,500. Investors will be able to access it directly or through programs like Charles Schwab & Co.'s OneSource mutual fund supermarket.